Management and Leadership: Starbucks Differentiate Research Paper

Evaluate the impact of globalization and management across borders

After its retrenchment in the U.S., Starbucks is still considering expanding its operations China. "Despite its long presence in the Chinese market -- Starbucks opened its first shop in Beijing in 1999 -- the Seattle coffee giant only has 376 stores on the China mainland, compared with 878 in Japan" (Sanchanta 2011). Starbucks has tried to learn from some of its mistakes domestically in the U.S., such as its super-saturation of certain marketplaces, while incorporating many of the successful lessons of its other ventures, such as its ability to tailor product offerings to local needs. "Cracking the code in China for any company is not an easy task -- there will be a number of winners and lots of losers of people who go there and rush to judgment and don't succeed…The thing I am most interested in when I go to China is whether or not local Chinese are buying Starbucks coffee and sitting in our stores," said Howard Schulz (Sanchanta 2011).. Schultz has been striving to learn more and more about Chinese preferences, so that when Starbucks does expand into China, it becomes the premium coffee shop that shapes the palates of the Chinese marketplace.

Managing across borders requires the organization to brand its product and/or service in a unified fashion yet respond to demographic and economic developments and trends. For example, to compete in Japan, Starbucks has had to slash its prices, as local competitors offer a cheaper product that is drawing consumers away. Only through careful monitoring of the specifics of the Japanese environment was this type of flexibility possible.

Two strategies used to create and maintain a healthy organizational culture

First, stay true to the brand -- Starbucks offers many different types of drinks and pastries across the world to suit local tastes, but there remains a Starbucks 'ethic' and appearance that unites all of these stores. But also be flexible -- respond to local tastes and needs, and to changes in the marketplace. Flexibility requires listening to employees, even while they are governed by strong leadership.

References

References

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Sanchanta, Mariko (2011). Starbucks plans major China expansion. The Wall Street Journal.

Retrieved July 21, 2011 at http://online.wsj.com/article/SB10001424052702304604204575181490891231672.html

Starbucks Corporation case study. (2011). McGraw-Hill. Retrieved July 21, 2011 at http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html

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